The Australia Institute has bemoaned the government for letting words speak far louder than any climate action, repeatedly approving coal and gas projects since taking office in 2022.
The institute's report outlines three principles the government should adopt, including stopping new gas and coal mines being approved, halting subsidies for gas and coal projects, and significantly reducing fossil-fuel exports.
The report insists that the government needs to legislate for a 25 per cent tax on all gas exports to fund this transition.
Global warming and rising sea levels have become a truly existential threat for Pacific countries like Tuvalu, which according to UNICEF will be 95 per cent underwater by 2100.
The country's climate change minister, Maina Talia, was in Canberra on Wednesday and pleaded with the Australian government to do more as a leader in the Pacific region.
Australia was continually "saying 'we love our Pacific neighbour and we continue to be part of the Pacific family','' Dr Talia told reporters.
"(They) are not on board on what needs to be done in order for countries like mine to stay above the water.
"We want to ensure that we bring something to the people, real solutions, not a false solution."
The co-chief executive of the Australia Institute, Richard Denniss, labelled Australia a hypocrite when it comes to climate change.
"Australia's hypocrisy is so great that Australia has joined the coalition of countries to plan a transition away from fossil fuels while still opening new fossil-fuel projects," Mr Denniss said.
"We give far more in taxpayers' subsidies to the fossil fuel industry than we give in green finance or indeed foreign aid to the Pacific."
Also under fire is the carbon offset scheme, which energy companies regularly use to parade supposedly positive environmental contributions while actively investing in more fossil fuels.
"We need to stop hiding behind carbon offsets as an excuse for fossil-fuel expansion."
Independent MP Zali Steggall said the decision should be simple, and the actions needed to line up with promises made to Pacific nations.
"Whilst on one hand continuing to approve coal and gas expansions, (the government) makes false promises to our Pacific region neighbours that it cares and that it will help them," Ms Steggall said.
"There is a very clear pathway to a world without fossil fuels, and we have to start by stopping approving (fossil-fuel projects)."